The gold leaf. [volume] (Henderson, N.C.) 1881-1911, 1887-12-15

lists no clear and undoubted executive rower
of relief. Heretofore the redemption of
per cent. bonds, which were payable at the
option of the governm' n, has afforded a
means for the disbursement of the excess Of
our revenues: but these bonds have all been
retired, and there are no bonds outstanding
the payment of which we have the right to
insist upon. The contribution to the sinking
fund which furnishes the occasion for ex-
penditure i'll the purchase of bonds has been
already made for the current year, SO that
there ia no outlet in that direction
In the present state Of legislation the only
pretenss Of any existing executive power to
restore at this time any part of our surplus
revenues to the people by its expenditure
consists in the supposition that the secretary
OF the treasury may enter the market and
purchase the bonds of the government net
yet due at a rate Of premium to be agreed
upon. The only provision of law from vhich
such power could be derived is founl in an
appropriation bill passed a number of years
ago, ard it is subject to the suspicion that it
was intended as temporary and limited in its
application, instead Of comforting cOntinu-
ing discretion and authority. No condition
ought to exist which would justify tie grant
of power to single Official, upon his juig-
ment of its necessity, to withhold from or
release to the business of the people in an
unusual manner money held in the treasury,
md thus affect, at his will, the financial
situation of the country; and if it is deemed
wise to lodge in the secretary of the treas
ury the authority in the present juncture to
purchase bonds it should be plainly vested,
and provided as far as possible with such
checks and limitations as will define this
officials right and discretion and at the
same time relieve him from undue responsi-
biiity.
THE QUESTION OF PURCHASING BONDS.
In considering the question OF purchasing
bonds as means of restoring to circulation
the surplus money accommodating in the treas
ury, it should be borne in mind that pre-
lnlums must of course be paid uTon such
purchase, that there may be large part of
these bonds held as investments which cam
not be purchased at any price, and that COM
binations among holders who are willing to
sell may unreasonably enhance the cost of
such bonds to the governm, Mt.
1t has been suggested that tho pre- ent
bonded debt might be refunded at less rate
of interest, and the difference between the
old and new security pail in cash, thus find
ing use for the surplus III the treasury. The
success of this plan, it is apparent, must de-
pend upon the volition of the holders of the
present bonds; and it is not entirely certain
that the inducement which must be offered
them would result in more financial benefit
to the government than the purchase Of
bonds, while tho latter proposition would re-
duce the principal of the debt by actual pay
ment, instead of extending it.
DEPosITING MONEY IN BANKS AN OBJECTION
The proposition to deposit the money held
by the government in banks throughout the
country, for use by the people, is, it seems to
me, exceedingly Objectionable in principle,
as establishing too close relationship be-
tween the operations of the government
treasury and the business of the country and
too extensive commingling of their money,
thus fostering an unnatural reliance in pri-
vate business upon public funds. If this
scheme should be adopted it should only b.
done as a temporary expedient to meet an
urgent necessity. Legislative and executive
effort should generally be in the opposite di-
rection, and should have a tendency to di-
vOrce, as much and as fast as can safely be
done, the treasury department from private
enterprise.
Of course it is not expected that unno ces-
sary and extravagatt appropria ations will lie
made for the purpose of avoiding the accu-
mutation of an excess of revenue Such ex-
penditure, beside the demoralIzation of all
Just conceptions of pnblc duty whicl it ell
tails, stimulates habit of reckless i, i,,provi-
dence not in the least consistent With the
mission of our people or the high and bencfi-
cent purposes of our government.
GRAVITY OF THE SITUATION
have deemed it my duty to thus bring to
the knowledge of my countrymen, as we'll as
to the attention of their representatives
charged with the responsibility of legislative
relief, the gravity of our financial situation
The failure of the congress heretofore TO
provide against the dangers which it WAS
quite evident the very nature of the diff
Guilty must necessarily produce, cause,l a
condition Of financial distress and alprehen-
on since your last adjournment, which
taxed to the utmost all the authority and
expedients within executive control; and
these appear now to be exhausted. If dis.
aster results from the continued inaction of
congress, the responsibility must rest where
it belongs.
Thou, h the situation thus far considered
is frausht with danger which should b. fully
alz,i, and though it presents features of
wrong to the people as Il as peril TO the
country, it is Lut result growing out OF a
perfectly palpHb.e and apparent cause, con-
6tantly reproducing the same alarming cir
cumStances-a congested national treasury
and depleted monetary condition in the
bus ness of the country. 1t need hlrdlv he
stated that while the present situation de-
mands remedy, we can only be saved from
a like predicament in the future by the re-
movdl of its cause.
OUR SCHEME OF TAXATION
Our scheme of taxation, by means of which
this needless surplus is, taken from the peo-
pie and put into the public treasury, con-
sists of tariff or duty levied upon inpor:a-
tions from abroad, and internal revenue
taxes leviel upon the consumption of to-
bacco and spirituous and malt liquors. 1t
must be conceded that none of the things
sui Jected 10 internal revenue t1xation are
strictly speaking, neceSsaries; there appears
to be no just complaint of this taxation by
the consum rs of these articles, and there
seems to be- nothing so well able to bear the
burden with ut hardship to any portion of
the people
TARIFF LAWS SHOULD BE AMENDED
But our present tariff laws, the vicious. in
equitable and illogical source of unnecessary
taxation, ought to be at once revised and
amended. These laws, as their primary and
plain effect, raise the price to consumers of
all articles imported and subject to duty. bv
precisely the sum paid for such dut es. Thus
the amount of the duty measures the tax
paid by those who purchase for use these i'm
ported articles, Many of these things, how
ever, are raised or manufactured in our own
country, and the duties now levied upon
foreign goods and products are called pro-
lection to theso home manufactures. bee Us,
they render it possible for those of cur peo-
pie who are manufacturers to make til, So
taxed articles and sell them for price equal